Pros and Cons of Corporate Health Insurance
Corporate health insurance policy refers to the type of insurance policy that provides coverage for the expenses in case of a health emergency, accidents, financial losses and more. India is leading in the world of entrepreneurship and start-ups so it is becoming common as well as important for an employer to take care of their employee’s health and financial problems and that’s where Corporate Health Insurance comes up.
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- Pros and Cons of Corporate Health Insurance
From an employee’s perspective, the Corporate health insurance policy is seen as the second-best thing next to monetary compensation and it makes the employee more loyal towards the organization. Let us move forward to the types of Corporate health insurance plans.
Types of Corporate Health Insurance Plans
Corporate health insurance plans are of two types:
- Contributory plan
- Non-Contributory plan
Contributory Plan
The insured members have to contribute to the premium amount. Then only they’ll be elgibile to avail of the insurance benefits.
Non-Contributory Plan
The insured members do not have to contribute to the premium amount. The employer takes care of it.
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Cost of Corporate Health Insurance Policy
Depending on the type of corporate health insurance plan whether it is a Contributory or Non-contributory plan the cost of it can be decided. It is conditional and varies from one type of plan to another.
How Corporate Health Insurance Plan differs from Regular Health Insurance Plan
- Corporate health insurance plans are different from regular health insurance plans as they are provided by the employer to the group of employees in his/her organization. However, a regular health insurance plan is purchased by the employee himself.
- Under a Corporate health insurance policy, medical examinations are skipped but the regular health insurance policyholder has to go through the medical examinations.
- The premiums are considerably lower as compared to the regular health insurance. It is because of the larger number of employees covered under the policy.
How does it work?
- As mentioned above, this policy is provided by the employer to the group of employees. It offers them optimum health coverage.
- Usually, there is a fixed sum insured that is provided to cover the cost of hospitalization. The insured has to be hospitalized for more than 24 hours.
- In case you want to increase the sum insured amount, you would have to pay an additional premium.
- It generally includes your spouse and children.
- Some Corporate health insurance plans have extended coverage for parents as well.
Since the corporate health insurance plan is provided by the employer, the employee rarely check-out the clauses and the coverage mentioned in the plan. It is advised that the employee should not hesitate in asking questions about the features and exclusions of the plan.
Advantages of Corporate Health Insurance
Corporate health insurance comes with several advantages. They are as follows:
No Medical Check-up
The policy is provided without under-going pre-medical check-ups, even for senior citizens. Wherein other health plans, a pre-medical test may be required depending on the age or pre-existing medical conditions.
Waiting period
There is a waiting period of 2 to 4 years for pre-existing diseases, specified medical conditions and maternity benefits. The employee is eligible to get the coverage from the start of the policy tenure.
Pre-existing Diseases
Coverage for pre-existing diseases depends on the type of corporate health insurance plan.
No contribution in Premium
The premium is paid by the employer. It depends on you if you plan to increase the sum insured or choose to add-on something else, you will have to pay for it.
Disadvantages of Corporate Health Insurance
There are some disadvantages also. They are as follows:
Policy Tenure
Corporate health insurance provides coverage to the employee as long as he works in that organization. The policy terminates when you leave the organization.
Not All the Plans Cover Family
Not all corporate health insurance plans provide coverage to the employee’s family. It is one of the major cons of this policy. If you’re married and have children and parents dependent on you, then corporate health insurance might not be a good fit for you and you might have to opt for a personal health insurance policy.
Pre-defined Room Rent Limit
The room rent limit is already defined under the corporate health insurance plan. So, if you choose a room with a higher tariff, then you will have to pay for the extra amount out of your pocket.
Coverage Amount
The coverage amount in the corporate health insurance policy has a limit of up to 4-5 lakh. In case of a serious illness or accident, this amount would only cover 20%-30% of the total expenditure.
To Conclude
Most of the organizations are providing corporate health insurance plans. The insurance company evaluates the risk factor that will be covered under the corporate health insurance plan and then the risk factors are combined and the premium is fixed on the average risk factor of the group.
Keeping the facts in mind, it would be a better idea to opt for a family floater health insurance plan that would cover your family and parents from all health-related emergencies.
Group Health Insurance Premium Calculator
Who do you want to insure?
- Employees
- Employees & their family
Minimum lives should be 7
Include maternity coverage
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